MORTGAGE FOR FOREIGN PEOPLE

  • 8 months ago
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  MORTGAGE FOR FOREIGN PEOPLE

There is a lot of mortgage products available in   Spain, you can find a mortgage directly through  your agency , with the bank or with a broker .

Most of the banks are speaking English and you can find the documents in English

To be prepared for you next purchase we have decided to give you some keys:

 

How can I borrow ?

It depends if you are or not resident

If you are not resident:

The first thing that you must know ist that you can obtain around 60-70 % of  the price of the property , it means that you must have  40 % of the price more 13 % for the fees .

If you decide to be resident

It can be as for Spanish people, around 80 %

The lenders will decide after reviewing your personal and financial profile

What documents will the bank ask for?

The documents typically required by a bank are:

  • Your .  nie number (You must get apply for a NIE number before you can buy a property in Spain .)
  • Your contract of  employment
  • Your last 3 payslips
  • Your latest income tax return
  • Your pre-agreement with the seller
  • Proof that the     IBI    on the house is paid up
  • Details of other mortgages or loans that you may have
  • All property deeds, both in Spain and overseas
  • Certificate from work authorities (vida laboral), showing your past work history
  • Records of your current assets (bank/mutual fund statements, etc.)
  • non-residents: A certificate of non residency (form available from the bank)
  • If self-employed:   LOCALED TAXES ON ECONOMICS
  •  If self-employed: Records of your assets during the last two years
  • If self-employed vat tax  you paid for the last quarter and last year

 

What  kind of mortgage can I expect  ?

 

Most are variable-rate mortgages, but since the last years you can also find fixed-rate and interest  mortgages. In a variable-rate mortgage, repayments vary according to the Euribor  the base rate set by the European Central Bank.  A fixed rate will be  in 2019  around 1.90 / 2.50 depending the bank , the guarantee that you can offer , your profile …

 

In addition to the price of the mortgage you must think that you will have to pay :

 

Property Valuation Fee: Before granting a mortgage, a Spanish lender will require the property to be valued by one of their own appointed appraisers. The buyer is responsible for this fee.

 

Mortgage Opening Fee: Many lenders charge a fixed fee of around 1% for setting up the mortgage.

 

Mortgage Insurance: It is a legal requirement of Spanish mortgages that you obtain general house and contents insurance. Depending on your circumstances, you might also consider life and mortgage insurance.

 

Mortgage Early Cancellation Fee: Buyers should be aware of this as it varies between lenders.

It can be around 0.50 %

 

Mortgage Notary Fee: the Notary must charge to register the mortgage ( both, bank and client  )

Spanish Stamp Duty: (known as AJD) is a tax on mortgages which is paid to the government. It is calculated as a percentage of the mortgage. It’s a cost for the bank

 

Deed Arrangement Fee: The lender employs a gestoria to arrange for the deeds to be correctly registered at the Land Registry. Each are  responsible for the gestoria’s fee.  they will pay the gestoria  fee + land register fee directly to the gestoria and they will do all the job for completing the registration  ( ½ each )

 

Pascual Associats can help you to manage the mortgage

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